Market Milestones: Banking on Banks

[Image] Good morning , The markets bounced last Friday and ripped higher all week long. We observed some mild and expected selling yesterday after the SPY encountered resistance following six consecutive bullish candles. The QQQ continues to lead the market both on the upside and the downside. It is possible that the SPY may experience a lower low before bouncing, while the QQQ makes a higher low. We are looking for robust buying activity around the October low on SPY, approximately $420.00, and the daily double-bottom neckline on QQQ, approximately $360.00. QQQ Hourly [Image]( SPY Daily [Image]( If we witness a substantial breakdown below these levels, it would be a significant warning sign that the higher time frame weekly double top on SPY is indeed unfolding. There are several significant warning patterns currently in play, including the [SPY's]( weekly double top, the [RSP's]( head and shoulders, the [IWM's]( head and shoulders, the [DIA's]( head and shoulders, the [ARKK's]( head and shoulders, the [XLE's]( double top, the [XLU's]( triangle breakdown, the [XLY's]( double top, the [XLB's]( head and shoulders, the [XLI's]( double top, the [XLP's]( new low, and the [XLF's]( double top. [Image] The Skynet Seven and the QQQ, but I repeat myself, look very strong and could certainty continue higher, making a new high before the end of 2023. Eventually those stocks will also top and when that happens a larger sell will likely follow. Earnings season is upon us and perhaps a solid earnings season can stave of the carnage that the charts above are hinting at. Speaking of carnage, let’s take a look at some bank stocks that will be kicking off this earning season. [Image] The biggest banks in America will be reporting earnings over the next week starting with JPM, WFC, C and PNC who all report this morning. Next week we have SCHW, BAC, GS, BK, MS and COF. JPM and WFC look like the strongest of the bunch, so if they get hit over earnings it will not be a good thing for the sector. C is looking extraordinarily weak, but this is nothing new. The chart has been dead since [2007](. Speaking of 2007, check out the [double top]( that preceded the cataclysmic meltdown in October 2007. This is a perfect example of a chart failing before the company. C is trending lower on the daily chart and looks like it could be reaching for new lows below the 2020 pivot. C Daily [Image]( Bank of America (BAC), the second biggest bank in America behind JPMorgan Chase (JPM), has recently come into a decade long trend zone. It will be a very bad thing for BAC if this trend zone fails. It could be warning of troubles we don’t even know about yet, just like the C double top in 2007. BAC Weekly [Image]( The final bank stock that we are going to look at today is Charles Schwab Corporation (SCHW). SCHW was absolutely slayed during the 2023 March banking crisis. It has since retested half of the weekly bearish candle and continued its sell off. This is a complex, multi-year topping pattern and double top on the weekly chart. It’s amazing how perfectly its neckline was retested before the continued sell off. This could mean SCHW is eventually headed down into 2020 lows once again. SCHW Weekly [Image]( If you made it this far, I appreciate it. [Let me know your thoughts](mailto:support@thetradersplan.com). Is banking in for a tumble? Or is this Market Milestones one big bumbling fumble. Strive On, Yates Craig, RLT & TPN Market Analyst Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221